October 16, 2009
To All Concerned Parties
Issuer of Real Estate Investment Trust Securities
1-1, Nihonbashi-Muromachi 2-chome, Chuo-ku, Tokyo 103-0022
Nippon Accommodations Fund Inc.
Representative Executive Director Nobuyuki Nakai(Code number 3226)
Investment Trust Management Company
Mitsui Fudosan Accommodations Fund Management Co., Ltd.
Representative President and CEO Nobuyuki Nakai
Contact CFO and Director Morio Shibata(TEL 03-3246-3677)

Notification Concerning Issuance of New Investment Units andSecondary Offering of Investment Units
Nippon Accommodations Fund Inc. (“NAF”) hereby provides notice of its resolution regarding issuance of new
investment units and secondary offering of investment units adopted at the Board of Directors’ Meeting held onOctober 16, 2009, as follows.
1. Issuance of new investment units by public offering(1)

Number of units to be offered

42,000 units(2)

Amount to be paid in

Undetermined. The amount to be paid in shall be determined at the(issue value)

Board of Directors’ meeting to be held on any date between October27, 2009 (Tue) and October 30, 2009 (Fri) (“Issue Price DeterminationDate”).

(3)

Method of offering

The method of offering shall be by public offering where all investment
units are to be subscribed and purchased by an underwriting syndicate
whose joint lead managers are Nomura Securities Co., Ltd. and Merrill
Lynch Japan Securities Co., Ltd. (“Joint Lead Managers”). Underwriters
other than Joint Lead Managers are Daiwa Securities SMBC Co., Ltd.,
Mizuho Securities Co., Ltd., Nikko Cordial Securities Inc. and
Mitsubishi UFJ Securities Co., Ltd. (hereinafter referred to collectivelywith Joint Lead Managers as “Underwriters”).
The issue price (offer price) for the public offering shall be determinedin consideration of the degree of demand and other conditions basedon a tentative price obtained by multiplying the closing price at theTokyo Stock Exchange on the Issue Price Determination Date (if noclosing price is available for that date, the nearest preceding closing
price will be used) by a number between 0.90 to 1.00 (any fractions
less than one yen shall be omitted).

(4)

Details of underwriting contract The Underwriters shall pay in the amount equivalent to the total
amount to be paid in (issue value) to NAF on the payment date statedin (7) below. The difference between such amount and the total issue
price (offer price) for the public offering shall be retained by theUnderwriters. NAF shall pay no underwriting commission to theUnderwriters.

<Caution> This document is a press release intended for general publication regarding NAF’s issuance of new investment units andsecondary offering of investment units and is not for purposes of soliciting investment. When investing, we ask that investors
exercise their own judgment taking full responsibility after having read carefully the new investment unit issuance and secondaryoffering prospectus, or any corrections thereof, prepared by NAF.

1(5)Subscription unit

One investment unit or more in whole units(6)

Subscription period

Two business days starting the business day immediately following the(7)Payment dateIssue Price Determination Date
Any date between November 4, 2009 (Wed) and November 9, 2009(Mon); provided, however, that such day shall be the fifth business day
immediately following the Issue Price Determination Date.
(8)

The amount to be paid in (issue value) and any other matters necessary for this issuance of new
investment units shall be determined at a future Board of Directors’ meeting.

(9)

The above items shall be subject to the effectiveness of registration under the Financial Instruments
and Exchange Act.

2. Secondary offering of investment units by overallotment (see “Reference” item 1. below)(1)

Offerer

Nomura Securities Co., Ltd.

(2)

Number of units to be offered

3,000 units
This number is the maximum number of investment units to be offered.
The number may decrease, or the secondary offering by overallotment
itself may be cancelled, depending on the degree of demand and otherconditions. The number of investment units to be offered shall bedetermined at the Board of Directors’ meeting to be held on the Issue
Price Determination Date, in consideration of the degree of demandand other conditions.

(3)

Offer price

Undetermined. The offer price shall be determined on the Issue Price
Determination Date; provided, however, that such offer price shall be
the same as the issue price (offer price) for the public offering.

(4)

Method of offering

Nomura Securities Co., Ltd. will make an offering of the maximum of
3,000 investment units of NAF that it borrows from the certain
investor(s) of NAF in consideration of the degree of demand and otherconditions in the public offering.

(5)

Subscription unit

One investment unit or more in whole units(6)

Subscription period

Same as the subscription period in the public offering(7)

Delivery date

The business day immediately following the payment date in the publicoffering(8)

The offer price and any other matters necessary for this offering of investment units shall be
determined at a future Board of Directors’ meeting.

(9)

The above items shall be subject to the effectiveness of registration under the Financial Instruments
and Exchange Act.

3. Issuance of new investment units by third-party allocation (see “Reference” item 1. below)(1)

Number of units to be offered

3,000 units(2)

Amount to be paid in (issue value)

Undetermined. The amount to be paid in (issuevalue) shall be the same as the amount to be paidin (issue value) for the public offering.

(3)

Allottee

Nomura Securities Co., Ltd.

(4)

Subscription unit

One or more units in whole units(5)

Subscription period (subscription date)November 30, 2009 (Mon)(6)Payment date

December 1, 2009 (Tue)<Caution> This document is a press release intended for general publication regarding NAF’s issuance of new investment units andsecondary offering of investment units and is not for purposes of soliciting investment. When investing, we ask that investors
exercise their own judgment taking full responsibility after having read carefully the new investment unit issuance and secondaryoffering prospectus, or any corrections thereof, prepared by NAF.

2(7)Investment units not subscribed within the subscription period (subscription date) stated in (5) above
shall not be issued.

(8)

The amount to be paid in (issue value) and any other matters necessary for this issue of new
investment units shall be determined at a future Board of Directors’ meeting.

(9)

The above items shall be subject to the effectiveness of registration under the Financial Instruments
and Exchange Act.

<Reference>
1. Secondary offering by overallotment, etc.
(1)

The secondary offering by overallotment stated in “2. Secondary offering of investment units byoverallotment” above is a secondary offering of overallotted units to be made in conjunction with the public
offering in “1. Issuance of new investment units by public offering” above in an amount not to exceed 3,000
investment units of NAF, that will be borrowed by Nomura Securities Co., Ltd. from the certain investor(s) ofNAF in consideration of the degree of demand and other conditions in the public offering (secondary offeringby overallotment). Although 3,000 investment units is planned to be offered by overallotment, this is themaximum number of investment units to be offered and, depending on the degree of demand and otherconditions, such number may decrease, or the secondary offering by overallotment itself may be cancelled.
In connection with the secondary offering by overallotment, the Board of Directors of NAF has resolved, atthe meeting held on October 16, 2009 (Fri), that NAF will issue by third-party allocation 3,000 investment
units of NAF necessary to return the units borrowed from the certain investor(s) of NAF by Nomura Securities
Co., Ltd. (“Borrowed Investment Units”), where the payment date is December 1, 2009 (Tue) and the allottee
is Nomura Securities Co., Ltd. (“Third-Party Allocation”).
Furthermore, Nomura Securities Co., Ltd. may also purchase investment units of NAF on the Tokyo Stock
Exchange up to the number of investment units to be offered by overallotment (“Syndicate CoverTransactions”) to return the Borrowed Investment Units. All investment units of NAF purchased throughSyndicate Cover Transactions shall be used to return the Borrowed Investment Units. Such Syndicate CoverTransactions would be made during the period beginning on the date immediately following the last day ofthe subscription period of the public offering and secondary offering by overallotment and ending on
November 24, 2009 (Tue) (the “Syndicate Cover Transaction Period”). During the Syndicate CoverTransaction Period, Nomura Securities Co., Ltd. at its discretion may not conduct any Syndicate CoverTransactions or may terminate any Syndicate Cover Transactions before the number of investment units
purchased reaches the number of investment units of the secondary offering by overallotment.
In addition, Nomura Securities Co., Ltd. may conduct stabilizing operations as it conducts the public offeringand the secondary offering by overallotment. The investment units of NAF purchased through such stabilizing
operations may be used, in whole or in part, to return the Borrowed Investment Units.
Nomura Securities Co., Ltd. plans to underwrite the allocation under this issuance of new investment units by
Third-Party Allocation of a number of investment units of NAF obtained by deducting (a) the number ofinvestment units purchased through stabilizing operations and Syndicate Cover Transactions that are to beused to return the Borrowed Investment Units, from (b) the number of investment units to be offered in theoverallotment. Accordingly, all or a part of the investment units to be issued under this issuance byThird-Party Allocation may not be subscribed for, which may result in a decrease in the maximum number ofinvestment units planned to be issued under this issuance by Third-Party Allocation, or in the cancellation of
the entire issuance due to forfeiture.
(2)

The transaction stated in (1) above shall be made by Nomura Securities Co., Ltd. in consultation with

the Merrill Lynch Japan Securities Co., Ltd.

<Caution> This document is a press release intended for general publication regarding NAF’s issuance of new investment units andsecondary offering of investment units and is not for purposes of soliciting investment. When investing, we ask that investors
exercise their own judgment taking full responsibility after having read carefully the new investment unit issuance and secondaryoffering prospectus, or any corrections thereof, prepared by NAF.

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2. Change in the number of issued investment units by this issuance
113,480 units
Total number of issued investment units at present
Increase in number of investment units by public offering
42,000 units
155,480 units
Total number of issued investment units after public offering
3,000 units (Note)
Increase in number of investment units by Third-Party Allocation
158,480 units (Note)
Total number of issued investment units after Third-Party Allocation(Note) Number of units in the event Nomura Securities Co., Ltd. subscribes all investment units offered byThird-Party Allocation, and said units are issued.
3. Purpose and reason for issuance
The issuance of new investment units was decided as a result of an examination of the current LTV (Loan toValue Ratio), market trends and cash distributions in an effort to promote external growth through the purchaseof new specified properties.
4. Total amount to be procured, specific use of funds and scheduled outlay period(1)

Total amount to be procured (approximate net balance)¥21,430,620,000 (maximum)(Note) Sum of ¥20,001,912,000 in net proceeds from the public offering and the ¥1,428,708,000 maximum
net proceeds from the issuance of new investment units by third-party allocation.
(2)

Specific use of procured funds and scheduled outlay period

The procured funds shall be allocated for the acquisition of specified properties to be purchased by NAF inand after November 2009 (as mentioned in “Notification Concerning Acquisition of Domestic Real Estate
Properties” released on October 16, 2009).
5. Designation of distributees
No relevant item
6. Future prospects and forecast for current period management conditions and previous period results
As mentioned in “Financial Results for the Fiscal Period From March 1, 2009 to August 31, 2009” releasedon October 16, 2009.
7. Management conditions during the three most recent fiscal periods and status of equity finance(1)

Management conditions during the three most recent fiscal periods
5th Period

6th Period

7th Period

March 1, 2008 to

September 1, 2008 to

March 1, 2009 toAugust 31, 2008

February 28, 2009

August 31, 2009
(Note 2)

Net income per unit (Note 1)¥14,461¥14,587¥13,626

Distribution per unit

¥14,461¥14,587¥13,626

Actual payout ratio

99.9%

99.9%

100.0%Net assets per unit

¥551,813¥551,939¥550,978(Notes)1. Net income per unit is calculated by dividing net income by the weighted average number of investment units.
2. Regarding the figures for the period ending August 31, 2009, no audit by the independent auditor pursuant to theprovisions of Article 193-2(1) of the Financial Instruments and Exchange Act shall be effected.

<Caution> This document is a press release intended for general publication regarding NAF’s issuance of new investment units andsecondary offering of investment units and is not for purposes of soliciting investment. When investing, we ask that investors
exercise their own judgment taking full responsibility after having read carefully the new investment unit issuance and secondaryoffering prospectus, or any corrections thereof, prepared by NAF.

4(2)Conditions during the most recent investment unit prices

A. Conditions during the most recent three fiscal periods
5th Period

6th Period

7th Period

March 1, 2008 to

September 1, 2008 to

March 1, 2009 toAugust 31, 2008

February 28, 2009

August 31, 2009

Opening price¥585,000¥480,000¥371,000

Highest price¥585,000¥546,000¥523,000

Lowest price¥387,000¥352,000¥359,000

Closing price¥495,000¥371,000¥512,000

B. Conditions during the most recent six-month period
2009
MayJuneJuly

AugustSeptember

October

Opening price¥429,000¥417,000¥437,000¥470,000¥519,000¥499,000

Highest price¥445,000¥450,000¥470,000¥523,000¥532,000¥515,000

Lowest price¥405,000¥406,000¥420,000¥464,000¥468,000¥460,000

Closing price¥417,000¥433,000¥470,000¥512,000¥499,000¥461,000(Note) The investment unit price for October 2009 is the price as of October 15, 2009.

C. Investment unit prices on the business day immediately prior to the resolution date of the issuance
October 15, 2009
Opening price¥483,000

Highest price¥486,000

Lowest price¥460,000

Closing price¥461,000(3)

Status of equity finance during the three most recent fiscal periods

No relevant item
8. Others
Restrictions on sale and additional issuance, etc.
A. Regarding the 6,600 investment units of NAF held as of October 16, 2009 of this document by Mitsui
Fudosan Co., Ltd., an investor that has held investment units of NAF since before the public offering, said
company has agreed with the Joint Lead Managers that it shall not effectuate any sale, etc. of theinvestment units it holds during the period from the Issue Price Determination Date to the date six months
after the business day immediately following the payment date of the public offering (restriction period),without the prior written consent of the Joint Lead Managers (however, excluding where investment units
are lent to Nomura Securities Co., Ltd. for the purpose of secondary offering by overallotment).
B. NAF has agreed with the Joint Lead Managers that it will not effectuate any issuance, etc. of investment
units of NAF in connection with the public offering during the period from the Issue Price Determination
Date to the date three months after the business day immediately following the payment date of the publicoffering (restriction period) without the prior written consent of the Joint Lead Managers (however,excluding where new investment units are issued by Third-Party Allocation or by investment unit split).

<Caution> This document is a press release intended for general publication regarding NAF’s issuance of new investment units andsecondary offering of investment units and is not for purposes of soliciting investment. When investing, we ask that investors
exercise their own judgment taking full responsibility after having read carefully the new investment unit issuance and secondaryoffering prospectus, or any corrections thereof, prepared by NAF.

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In the event of either A. or B. above, the Joint Lead Managers at their discretion have the right to dissolve
said agreements in whole or in part during the respective restriction periods.
•The Japanese original document was distributed to press clubs within the Tokyo Stock Exchange(Kabuto Club) and the Ministry of Land, Infrastructure and Transport, and to the press club of theconstruction trade newspaper of the Ministry of Land, Infrastructure and Transport.

•NAF website: http://www.naf-r.jp

Please note that this English translation of the Japanese original document is provided solely for informationpurposes. In the event of any discrepancy between the Japanese original and this English translation, theJapanese original shall prevail.

<Caution> This document is a press release intended for general publication regarding NAF’s issuance of new investment units andsecondary offering of investment units and is not for purposes of soliciting investment. When investing, we ask that investors
exercise their own judgment taking full responsibility after having read carefully the new investment unit issuance and secondaryoffering prospectus, or any corrections thereof, prepared by NAF.

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